New York 2025-2026 Regular Session

New York Senate Bill S09572

Introduced
3/25/26  

Caption

Requires at least one director on a board of directors of a residential cooperative housing corporation be a primary resident of such residential cooperative housing corporation; prohibits the charging of payments, fees or charges by cooperative housing corporations without thirty days written notice to such cooperative housing corporation's shareholders.

Impact

By mandating that a primary resident serves on the board, the bill enhances the accountability and responsiveness of these boards towards the residents they serve. This change is expected to promote better governance within residential cooperatives, potentially improving community relations and ensuring that directors are more attuned to the needs of the residents. Additionally, the bill prohibits cooperative housing corporations from charging any fees or payments without providing a minimum of thirty days written notice to their shareholders. This provision aims to increase transparency and protect the financial interests of residents.

Summary

Bill S09572 aims to amend the business corporation law and the not-for-profit corporation law in New York State. A significant provision of this bill is the requirement that at least one director on the board of a residential cooperative housing corporation must be a primary resident of that cooperative. This requirement seeks to ensure that the governance of these corporations includes individuals who have a direct stake in the community, thereby aligning the interests of the directors with those of the residents.

Contention

While the bill is largely seen as a positive step towards enhancing resident representation on boards, it may face opposition from those who argue that such requirements could limit the pool of potential directors and complicate board operations. Proponents of the bill believe that having directors who are also residents will lead to better decisions that directly affect the quality of life within the cooperative. Critics may argue that the requirement could impose undue restrictions on the governance structures, particularly in larger cooperatives where finding qualified residents to serve on the board might be challenging.

Companion Bills

NY A10983

Same As Requires at least one director on a board of directors of a residential cooperative housing corporation be a primary resident of such residential cooperative housing corporation; prohibits the charging of payments, fees or charges by cooperative housing corporations without thirty days written notice to such cooperative housing corporation's shareholders.

Previously Filed As

NY A10983

Requires at least one director on a board of directors of a residential cooperative housing corporation be a primary resident of such residential cooperative housing corporation; prohibits the charging of payments, fees or charges by cooperative housing corporations without thirty days written notice to such cooperative housing corporation's shareholders.

NY S02098

Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.

NY A07090

Requires the board of directors of a residential cooperative housing corporation to notify applicants seeking to purchase shares of the corporation of the reason or reasons the board of directors has refused such request.

NY S10220

Authorizes residential cooperative corporations to offer health insurance.

NY A10773

Authorizes residential cooperative corporations to offer health insurance.

NY HB85

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY SB927

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY SB511

Corporations and Associations - Cooperative Limited Equity Housing Corporations - Establishment

NY HB1615

Cooperative Housing Corporations and Condominiums - Emergency Use of Reserve Funds

NY SB576

Cooperative Housing Corporations and Condominiums - Emergency Use of Reserve Funds

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